The Bank of Canada is seen in Ottawa on September 6, 2017. All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement. Economists widely believe that based on the economic environment, it’s likely that governor Stephen Poloz will raise the central bank’s benchmark interest rate today for a third time since last summer. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada to make interest rate decision today

Economists widely believe that based on the economic environment, it’s likely interest rates will rise today

All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement.

Economists widely believe that based on the economic environment, it’s likely that governor Stephen Poloz will raise the central bank’s benchmark interest rate today for a third time since last summer.

Many note that Poloz has indicated that interest rate decisions will be data dependent.

Related: Bank of Canada raises interest rate to 1 per cent

In addition to a stronger-than-expected jobs report released earlier this month, the central bank’s Business Outlook Survey revealed that sentiment remained positive during the final quarter of 2017.

But many economists say a rate hike today doesn’t mean the Bank of Canada is poised to start a rapid tightening cycle.

Given high household debt levels, the unknown impact of tighter stress tests for uninsured mortgages that came into effect this year and uncertainty surrounding NAFTA renegotiations, the bank must be cautious about how quickly it raises rates in order to avoid derailing the economy.

Scotiabank Economics is forecasting 75 basis points of gradual tightening this year spread out throughout 2018, while TD Economics expects a gradual pace of tightening over the next two years of about 25 basis points every six months.

RBC Economics Research says it expects the Bank of Canada to raise the overnight rate by 25 basis points to 1.25 per cent today.

Related: Debt-to-household-income ratio rises in third quarter

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Nelson Women’s March joins others across globe

The event was held to promote equality and an end to violence against women

Born 1 pound, 11 ounces, Winlaw premature baby comes home

Indra Greaves was born at the Nelson hospital after just 24 weeks of gestation

Leafs stretch winning streak to 8 games

Nelson downed Grand Forks 5-2 on Friday

RDCK moves ahead with Castlegar rec complex upgrade plan

Board approves grant application for $13 million from provincial, federal governments

Cottonwood Lake preservation group surpasses $50,000 fundraising goal

In 28 days, 393 donors have contributed to the fund

VIDEO: Students in MAGA hats mock Native American at Indigenous Peoples March

Diocese in Kentucky says it is investigating the matter, caught on video by onlookers

CONSUMER REPORT: What to buy each month in 2019 to save money

Resolve to buy all of the things you want and need, but pay less money for them

Want to avoid the speculation tax on your vacant home? Rent it out, Horgan says

Premier John Horgan and Sheila Malcolmson say speculation and vacancy tax addresses homelessness

UPDATE: B.C. woman and boy, 6, found safe, RCMP confirm

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

PHOTOS: Women’s Marches take to the streets across B.C. and beyond

Women and allies marched worldwide protesting violence against women, calling for equality

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Federal Liberals announce former B.C. MLA as new candidate in byelection

Richard Lee will face off against federal NDP leader Jagmeet Singh

No winning ticket in $10 million Lotto Max jackpot

No win in Friday night’s draw means the next Lotto Max draw will be approximately $17 million

Most Read